Whether Brought Forward Losses Be Set Off Against Profit U/s. 50?
Yes, the income tax is one tax. Section 14 of the Act, classifies the taxable income under different heads for the purpose of computation of net income of the assessee. Though, for the purpose of computation of the income,
Whether Installment Received Of Money Back Policy Is Liable To Tax?
From the facts, it is clear that Mr. X has taken money back insurance policy called as New Bima Bachat Policy. As per the terms of the said policy, it is a single premium payment policy, where sum assured will be paid back to the policy holder in the form of survival benefit periodically.
Whether Revocation Of Gift Of Immovable Property Is Liable To Tax?
A gift to non relative would attract section 56(2) and would be assessed in the hands of the recipient. In such case section 50C would not be attracted. Section 50C would be attracted when there is transfer of capital assets
Whether On Distribution Of Assets By The Firm Would Be Liable TO Tax On Dissolution Or On Distribution?
If plant and machinery are withdrawn by the partners at book value during the continuance of partnership firm, then, the same can be debited to partners ac-count and credited to plant and machinery account in such case there is no question of any liability of capital gains. [See Malabar Fisheries Co. [120 ITR 49 (SC)]
Whether Debt Restructuring Is Remission Or Cessation Of Trading Liability And Liable To Tax U/s. 41(1)?
On debt restructuring with bank, the bank has waived Rs. 15/- crores out of term loan of Rs. 100/- crores, which was taken for purchase of machinery. So, the loan was for purchase of a capital asset and the same was not debited to trading account or profit and loss account and therefore remission of that liability cannot be treated as income under section 41(1) of the Act. See Mahindra and Mahindra Ltd. v. CIT [261 ITR 501 (Bom.)] and CIT v. Xylon Holdings (P) Ltd. [26 Taxmann.com 333 (Bom.)].